The Compliance Process of Food Quality Standards on Primary Producer Level: A Case Study of the EUREPGAP Standard in the Moroccan Tomato Sector

Fruit and vegetable sectors are principally seen as sectors where small producers are able to participate due to their low demand on land and their high labor requirements. However, the concern exists that small producers participation in the international fruit and vegetable trade could be diminishing as a result of the increasing prevalence of food quality standards in the sector. Standards define the terms of chain membership, imply rules and conditions for participation, and hence lead to processes of (re)distribution within the chain (Gibbon and Ponte, 2005). For some producers, standards may open up new opportunities as they permit market access to particular market segments. At the same time, the process of (re)distributing market shares is accompanied by marginalization and exclusion, as standards may impose prohibitively high barriers for certain producers in terms of the short-term and long-term efforts needed for production under certification. This is particularly relevant since certification with private standards has become a major requirement for participation in fruit and vegetable markets worldwide. One of the most important private standards for fruit and vegetables is the EUREPGAP standard, which has now become quasi-mandatory for several export destinations (USAID, 2005). This paper aims to analyze two particular questions with regard to the distributional effects of standards: 1) which producers comply, and which do not; and 2) why do some producers comply while others do not? With respect to the first question, various surveys have mentioned the particular difficulties facing small producers within this new trading environment (e.g. Humphrey et al. 2004; Kleinwechter and Grethe 2006; Maertens and Swinnen 2006; World Bank 2005). However, most of these surveys have hypothesized that small producers are disadvantaged within the new trading environment on theoretical grounds without actually providing empirical evidence for this assertion.Food Consumption/Nutrition/Food Safety,

The Compliance Decision with Food Quality Standards on Primary Producer Level; A Case Study of the EUREPGAP Standard in the Moroccan Tomato Sector

Within a trading system which is increasingly determined by food quality standards the concern exists that small producers possibilities for participation on international trade diminish. However, most concerns base on theoretical considerations and little empirical evidence exists. This paper empirically analyzes the compliance decision of Moroccan tomato producers with the EUREPGAP standard based on results of 63 interviews. By comparing the decision process of certified and non certified producers the most important drivers for certification are identified. Theoretically the analysis bases on the decision model of Rogers (2003) which was developed to analyze the decision process to adopt technical innovations. Results of the survey open up interesting opportunities for interpretation. 1) No results are found that small producers were particularly disadvantaged in the compliance process. 2) Less-organized or less integrated farmers tend to be disfavored since especially forward integration in form of being a member in a cooperative changes the cost of compliance. 3) Forward integration tens to be of particular importance not only because of decreasing cost of compliance but as well because of a direct access to information on the buyers requirements. The survey explores that using the term small as a synonym for less organized, less educated and technically less advanced production tends to be false when looking at small producers in the export value chain. These producers are small in relative terms and often larger in size as well as in capital and human capital than small producers producing for the domestic market.Food Consumption/Nutrition/Food Safety,

Standards, a catalyst for the winners - a barrier for the losers? An empirical analysis of the impact of higher SPS measures on the trade performance of developing countries

Within the debate about developing countries export competitiveness the increasing importance of food safety and quality standards especially in OECD countries appeals to be one of the major sources of concern. The paper analyses the trade performance of 73 developing countries within the context of stricter SPS measures. The analysis concentrates on the meat and fruit / vegetable sectors as especially high value product sectors are determined by standards. The periods under consideration are 1993- 1995, as a period before the implementation of the SPS Agreement and 2002- 2004, as a period after the implementation. A cluster analysis groups the countries according to the variables "ratio" and "difference" of the export value to OECD countries including the possibility to explore trade performance regarding to the absolute level of change and relative dynamics. Subsequently, interconnections with EU and US border rejections as well as with STDF (Standards and Trade Development Facility) investment are explored. For the results three major findings should be underlined: e) The group of developing countries shows as well in total as in relative terms a very heterogeneous picture of their export development and there is no linear relation between total export value and direction of development. ee) Ten groups were identified in the cluster analysis, like e.g. small winners, large winners, small losers, large losers. eee) Most large exporters increased their market share, but very successful groups were also found among small exporters, especially in the fruit / vegetable market. eeee) Both, border rejections as well as STDF investments did not reflect a particular structure related to market share development of individual countries.Food Safety, SPS, Developing Countries, Cluster Analysis, Competitiveness., International Relations/Trade,

Quality Standards for Food Products - A Particular Burden for Small Producers in Developing Countries?

This paper develops an analytical framework which structures the problem of whether, how and to what extent small producers in developing countries are disadvantaged by the increasing prevalence of food quality standards. Based on a literature review, the empirical evidence is structured and research gaps are identified. The paper finds that small and medium producers rarely comply without support from downstream actors. In case of well-educated and relatively wealthy farmers, forward integration is also found. No empirical support exists for the intuitively appealing hypothesis of a lower cost of compliance per unit of output for large producers. Zusammenfassung In diesem Papier wird ein Analyserahmen entwickelt, um die Möglichkeit und das Ausmaß der Benachteiligung von Kleinlandwirten in Entwicklungsländern durch die zunehmende Verbreitung von Qualitätsstandards für Produkte der Agrar- und Ernährungsindustrie zu strukturieren. In einer Literaturübersicht werden die Ergebnisse empirischer Studien ausgewertet und Forschungslücken identifiziert. Es wird gezeigt, dass Kleinlandwirte aufwändige Prozessstandards selten ohne die Unterstützung von Unternehmen auf nachgelagerten Stufen der Wertschöpfungskette implementieren. Die einleuchtende und weit verbreitete Hypothese, dass die Cost of Compliance per Produkteinheit für große Produzenten niedriger als für kleine Produzenten seien, wurde bisher empirisch nicht bestätigt.Quality Standards, International Trade, EUREPGAP, Certification, Small Farmers, Developing Countries, Cost of Compliance, Agribusiness, International Relations/Trade,

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Der Boden geht uns aus. Weltweit steigt die Nachfrage. Besonders die wertvollsten Ökosysteme stehen immer mehr unter Druck - ein Kapitel aus dem Bodenatlas

The impact of food safety and quality standards on developing countries agricultural producers and exports

Der internationale Agrarhandel ist zunehmend durch Nahrungsmittelsicherheits- und Qualitätsstandards bestimmt. Standards definieren Regeln und Konditionen der Teilnahme an Wertschöpfungsketten und führen dadurch zu einer Umverteilung von Marktanteilen innerhalb dieser Wertschöpfungskette. Für einige Produzenten eröffnen Standards und Zertifizierungssysteme neue Vermarktungsmöglichkeiten, da sie den Zugang zu speziellen Marktsegmenten ermöglichen. Gleichzeitig aber ist der durch die zunehmend strengen Qualitätsstandards eingeleitete Prozess der Umverteilung begleitet von Marginalisierung und Marktausschluss. Dies geschieht, wenn bestimmte Produzenten die Anforderungen der standardisierten oder zertifizierten Produktion nicht erfüllen können. Die vorliegende Doktorarbeit analysiert die in Wissenschaft und Politik wiederholt geäußerte Annahme, dass Nahrungsmittelsicherheits- und Qualitätsstandards ein spezielles Hindernis für den Marktzugang von Entwicklungsländern auf die Märkte der Industrieländer darstellen. Des Weiteren wird angenommen, dass in Entwicklungsländern insbesondere kleinere Produzenten Nahrungsmittelsicherheits- und Qualitätsstandards nicht erfüllen können und an der Marktteilnahme ausgeschlossen werden. Vor diesem Hintergrund geht die vorliegende Arbeit drei zentralen Fragen nach: a) in welcher Weise beeinflussen Nahrungsmittelsicherheits- und Qualitätsstandards die Marktanteile der Entwicklungsländer auf dem internationalen Agrarmarkt b) in welcher Weise wirken sich Nahrungsmittelsicherheits- und Qualitätsstandards speziell auf kleinbäuerliche Produzenten aus und c) welche Einflüsse entscheiden darüber, dass Produzenten Standards übernehmen oder nicht. Die Ergebnisse der Arbeit zeigen, dass sich die Marktanteile unterschiedlicher Entwicklungsländer unter dem Einfluss zunehmend strenger Nahrungsmittelsicherheits- und Qualitätsstandards sehr unterschiedlich entwickelt haben. Weiterhin deuten die Ergebnisse der Forschungsarbeit darauf hin, dass ein starkes staatliches Engagement und die Einbindung des Privatsektors sich positiv auf die Fähigkeit eines Landes auswirken, mit den neuen Marktanforderungen umzugehen, was dann zu einer positiven Entwicklung der Marktanteile führt. Des Weiteren zeigt sich, dass die kleinbäuerliche Produzenten aus theoretischer Perspektive durchaus einen komparativen Nachteil in der Anpassung an bestimmte Standards haben können, wenn die speziellen Eigenschaften kleinbäuerlicher Produktionssysteme in Betracht gezogen werden. Diese zeichnen sich unter anderem durch die Schwierigkeit aus, Informationen über Standards und Zertifizierungssysteme zu generieren und diese zu implementieren. Dennoch zeigt die im Rahmen der vorliegenden Arbeit durchgeführte Fallstudie des marokkanischen Tomatensektors, dass die Größe der Produktion nur schwach mit den Anpassungskosten korreliert. Die Fallstudie macht deutlich, dass die Produzenten über die Anforderungen und Bedürfnisse der Käufer informiert sein müssen. Ergebnisse der Analyse zeigen, wie wichtig die vertikale Integration in die Wertschöpfungskette ist, um diese Informationen zu erhalten, da diese Informationen kaum horizontal zwischen den Produzenten kommuniziert werden.The agricultural trading environment is increasingly determined by food safety and quality standards. Standards define the terms of chain membership, imply rules and conditions for participation, and hence lead to processes of (re)distribution within the chain. For some producers, standards may open up new opportunities as they permit market access to particular market segments. At the same time, the process of (re)distributing market shares is accompanied by marginalization and exclusion, as standards may impose prohibitively high barriers for certain producers in terms of the short-term and long-term efforts needed for production under certification. This thesis aims to have a closer look at the concern voiced by many researchers that food safety and quality standards establish a particular burden for exports from developing countries and, within the developing countries, for the small producers. Coming from this starting point the thesis aims to establish a detailed understanding of a) how developing countries` export shares are affected differently by food safety and quality standards, b) the particular impact of food safety and quality standards on small producers and c) the compliance decision process standards at the producer level. Results of the thesis show that developing countries are a heterogeneous group that shows various different tendencies regarding market share development under the impact of strengthening food standards. In addition, the analysis showed that “being small” in terms of export quantity at the country level does not necessarily lead to a negative impact of food safety and quality standards on the export share. Results of the analysis rather hint to the fact that a stronger involvement of the government and the private sector in SPS activities as well as a better communication structure within the country increase SPS capacity of a country and thus have a positive effect on a successful export performance. The same differentiated perspective is necessary to understand the impact of food safety and quality standards on small producers. On a theoretical basis small farmers could well have a comparative disadvantage in complying with quality standards owing to their specific endowments, which hamper their ability to acquire information on the standard and to implement it. However, empirical evidence of the Moroccan case study shows that farm size only correlates marginally with the cost or compliance. The survey rather shows how important the forward integration in the value chain is in order to understand the importance of food safety and quality standards for the marketing performance. To maintain market shares or even increase those in high quality markets, producers need information about the buyers’ requirements. Results of the survey show the importance of vertical coordination and direct information exchange between downstream actors, buyers and producers as information on buyer’s demands is rarely communicated horizontally amongst the farmers themselves

Nutzung

Der Boden geht uns aus. Weltweit steigt die Nachfrage. Besonders die wertvollsten Ökosysteme stehen immer mehr unter Druck - ein Kapitel aus dem Bodenatlas

The Compliance Process of Food Quality Standards on Primary Producer Level: A Case Study of the EUREPGAP Standard in the Moroccan Tomato Sector

Fruit and vegetable sectors are principally seen as sectors where small producers are able to participate due to their low demand on land and their high labor requirements. However, the concern exists that small producers' participation in the international fruit and vegetable trade could be diminishing as a result of the increasing prevalence of food quality standards in the sector. Standards define the terms of chain membership, imply rules and conditions for participation, and hence lead to processes of (re)distribution within the chain (Gibbon and Ponte, 2005). For some producers, standards may open up new opportunities as they permit market access to particular market segments. At the same time, the process of (re)distributing market shares is accompanied by marginalization and exclusion, as standards may impose prohibitively high barriers for certain producers in terms of the short-term and long-term efforts needed for production under certification. This is particularly relevant since certification with private standards has become a major requirement for participation in fruit and vegetable markets worldwide. One of the most important private standards for fruit and vegetables is the EUREPGAP standard, which has now become quasi-mandatory for several export destinations (USAID, 2005). This paper aims to analyze two particular questions with regard to the distributional effects of standards: 1) which producers comply, and which do not; and 2) why do some producers comply while others do not? With respect to the first question, various surveys have mentioned the particular difficulties facing small producers within this new trading environment (e.g. Humphrey et al. 2004; Kleinwechter and Grethe 2006; Maertens and Swinnen 2006; World Bank 2005). However, most of these surveys have hypothesized that small producers are disadvantaged within the new trading environment on theoretical grounds without actually providing empirical evidence for this assertion

The Compliance Decision with Food Quality Standards on Primary Producer Level; A Case Study of the EUREPGAP Standard in the Moroccan Tomato Sector

Within a trading system which is increasingly determined by food quality standards the concern exists that small producers possibilities for participation on international trade diminish. However, most concerns base on theoretical considerations and little empirical evidence exists. This paper empirically analyzes the compliance decision of Moroccan tomato producers with the EUREPGAP standard based on results of 63 interviews. By comparing the decision process of certified and non certified producers the most important drivers for certification are identified. Theoretically the analysis bases on the decision model of Rogers (2003) which was developed to analyze the decision process to adopt technical innovations. Results of the survey open up interesting opportunities for interpretation. 1) No results are found that small producers were particularly disadvantaged in the compliance process. 2) Less-organized or less integrated farmers tend to be disfavored since especially forward integration in form of being a member in a cooperative changes the cost of compliance. 3) Forward integration tens to be of particular importance not only because of decreasing cost of compliance but as well because of a direct access to information on the buyers requirements. The survey explores that using the term small as a synonym for less organized, less educated and technically less advanced production tends to be false when looking at small producers in the export value chain. These producers are small in relative terms and often larger in size as well as in capital and human capital than small producers producing for the domestic market